A profit-maximizing firm decides to shut- down production in the short-run. Its total fixed cost of production is $100, i.e., TFC = $100. If the firm had produced a positive quantity which of the following would have been true? A The firm's revenues would have been lower than $100. B The firm's total variable cost must be lower than $100. C The firm's losses would have been higher than $100. The firm's total variable cost would D have been higher than $100. 1/20 Submit

Economics Question

The following graph shows the short-run average total cost curves and the long-run average cost curve for a publishing firm. The five marked quantities indicate points of tangency between each short-run average total cost curve (SRATC) and the long-run average cost curve (LRAC); for example, Q₁ marks the point of tangency between SRATC₁ and LRAC. The orange point on SRATC3 indicates the firm's current output level in the short run (Q3). COST PER UNIT SRATC₁ LRAC SRATC₂ Q₁ Q₂ SRATC3 24 QUANTITY OF OUTPUT SRATC5 SRATC4 | 1 Q5 <

Assume that the cost data in the following table are for a purely competitive producer:   TotalProduct AverageFixed Cost AverageVariable  Cost AverageTotal Cost Marginal Cost 0         1 $60.00 $45.00 $105.00 $45.00 2 30.00  42.50  72.50 40.00 3 20.00  40.00  60.00 35.00 4 15.00  37.50  52.50 30.00 5 12.00  37.00  49.00 35.00 6 10.00  37.50  47.50 40.00 7 8.57  38.57  47.14 45.00 8  7.50  40.63  48.13 55.00 9  6.67  43.33  50.00 65.00 10  6.00  46.50  52.50 75.00   Instructions: If you are entering any negative numbers be sure to include a negative sign (−) in front of those numbers. Select "Not applicable" and enter a value of "0" for output if the firm does not produce. a. At a product price of $56.00        (i) Will this firm produce in the short run?    (Click to select)   No   Yes         (ii) If it is preferable to produce, what will be the profit-maximizing or loss-minimizing output?                (Click to select)   Not applicable   Loss-minimizing…